Answer:
1,500 units; 1,000 units
Explanation:
Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit
Fixed cost = $160,000
Sales Mix = 60% of X + 40% of Y
= 0.6X + 0.4Y
So,
Contribution Margin of the Mix:
= (60% × contribution margin of X) + (40% × contribution margin of Y
)
Contribution Margin of the Mix per unit:
= (60% × 80) + (40% × 40)
= 48 + 16
= $64
Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit
= 160,000 ÷ 64
= 2,500 unit
At the Level of break even
:
Unit of X at break-even:
= 60% of 2,500
= 1,500 units
Unit of Y at break-even:
= 40% of 2,500
= 1,000 units
Answer:
B. are also part of the value chain
Explanation:
Value chain comprises two activities i.e primary activities and support activities.
The primary activities include those activities which add the value to the customer through inbound logistics, outbound logistics, operations, and marketing sales and services
Whereas the support activities are those activities who support the primary activities. It involves procurement, firm infrastructure, etc
Answer:
Explanation:
Calculation of total loss:
Net loss 320,000
Preferred dividend [5000*8%*100] 40,000
Total loss 360,000
Calculation of shares:
Common shares 250,000
Additional common stock [36,000*7/12] 21,000
Total shares 271,000
Loss per share = 360,000/271,000 = $1.328
Answer:
They should be reported in 2 different parts, first under current liabilities as:
Then under long term liabilities:
- Notes payable expected to be refinanced $1,044,000
Explanation:
the total short term notes payable on December 31 = $1,313,000
- $1,044,000 were paid off by issuing common stocks, so that portion of the debt must be reported as notes payable expected to be refinanced (or refinanced debt)
- the remaining $269,000 which were paid using cash reserves must be reported as current notes payable
